CSL Finance Limited · NSE:CSLFINANCE
CSL Finance — Q2 FY20 Earnings Presentation
32 slides from CSL Finance's earnings presentation, Dec 19, 2019
Slide 1: Cover letter to BSE: Investor Update
(es CSL Finance \/ Limited CIN: L74899DL1992PLC051462 Date: 19.12.2019 To, The Manager, Department of Corporate Services BSE Limited Phiroze Jeejeebhoy Towers Dalal Street, Mumbai-400001 Fax: 022-2272 3121/22721278 Sub: Investor Update Scrip Code: 530067 Dear Sir, Please find enclosed herewith the c
Slide 2: FY20 Q2 - Update
CSL Finance Limited BSE: 530067 | ISIN: INE718F01018 | CIN: L74899DL1992PLC051462 | WWW.CSLFINANCE.IN FY20 Q2 - Update © 2019 CSL FINANCE LIMITED, ALL RIGHTS RESERVED
Slide 3: Table of Contents
Table of Contents Company Snapshot 3 Business Strategy 4 Key Management Team 5 Our Presence 7 Product Portfolio 8 Wholesale Book 10 SME Retail Lending Book 19 Financial Snapshot 23 ALM Breakup 28 Debt Profile 29 Our Outlook & Strategy 30 (©) CSL Finance Limited © 2019 CSL Finance Limited, All Rights
Slide 4: Company Snapshot
Company Snapshot Si Listed on Bombay Delhi based NBFC with Wholesale housing book of 98% of loan Stock Exchange AUM of Rs 318 Cr as on 30th INR 249 Cr & SME Retail book is secured Sep-19 book of INR 69 Cr. Al fi 19 Branches spread Raised Rs 51 Cr from High CAR BBB rating across North and West India
Slide 5: Business Strategy
Business Strategy Portfolio Quality Focussed Approach Prudent risk management and Pragmatic build up of portfolio continuous monitoring of portfolio in chosen geographies through cluster approach Costs ® Flexibility Optimisation of Ves Flexible offerings in line with operating profits customer needs
Slide 6: Management Team
Management Team Rohit Gupta (Managing Director) Naresh Varshney (CFO) Rohit is a CA with over 25 years of diverse Naresh is a CA with more than 25 years of diverse experience in the fields of merchant banking, experience in the field of financial services, corporate finance, financial restructuring,
Slide 7: Management Team
Management Team Ranjheet Jha (State Head SME Delhi) Rakesh Singh Shokeen (SME Collections) Ranjheet has over 8 years of rich experience in Rakesh has over 7 years of extensive experience In managing various channels in retail lending the collections fields of SME and MSME segments. products. He has
Slide 8: Our Presence
Our Presence Jalandhar © Sua 9 Qg Dehradun ) Patiala Q) Yamuna = Ambala#4 N Hissar 9 agar Panipat 9 New Delhi States Present 9 a DE vehi Sikar 9 I Haryana 9 © Jaipur a Ajmer a Punjab Jodhpur 9 | Uttrakhand Bhilwara | | Rajasthan Gujarat Mehsana 9 Ahmedabad g Baroda 9g Surat Map not to scale, for rep
Slide 9: Product Portfolio
PRODUCT PORTFOLIO Product Category Book Size (Rs Cr) Q2 FY20 Customer Segment Wholesale Lending Standard and Structured loans given to corporates into Wholesale Large 138.33 Group housing projects Loans given to Small Builders, engaged in development Se een sl of Single Plotted Projects in Delhi NCR
Slide 10: AUM Composition
AUM Composition Q2 FY20 Q2 FY19 SME Retail Book SME Retail Book 22% 11% 718% 89%0 Wholesale Book Wholesale Book @)) CSL Finance Limited
Slide 11: Wholesale Lending Book
Wholesale Lending Book - — to be revised completely Business Approach Assets Under Management (AUM) Figures in INR Crores ¥ Focused approach with concentration in limited geographies helped to gain better knowledge , control & monitoring ¥ Market Penetration with conscious selection of customers. 29
Slide 12: Wholesale Large Book (WS Large)
Wholesale Large Book ( WS Large) Wholesale Large Portfolio Segment Update Y WS Large book mainly consists of Group housing projects of middle & affordable Commerical Group 2% segment concentrated in Northern Region of Housing India 39% Y Total AUM of WS large book is INR 138.33 Cr as on 30 Sept. The
Slide 13: WS Large - Affordable Housing
WS Large —Affordable Housing Affordable Group Housing Segment Update Figures in INR Crores ¥ Projects with average unit cost less than 25 lacs, high saleability and large customer reach due to higher affordability 120 114 ¥ \|t constitutes of 33% (INR 81.63 Cr) of total Wholesale book (AUM) 100 ¥ Un
Slide 14: WS Large - Group Housing
WS Large — Group Housing Residential Group Housing Segment Update Figures in INR Crores 60 ¥ Projects with average ticket size of INR 30- 50 lacs majorly focusing on mid segment income 50 group 44 ¥ Consistent demand due to easy affordability 40 37.13 and ready to move inventory 30 29.41 ¥ It consti
Slide 15: WS Large - Commercial Projects
WS Large -Commercial Projects Commercial Projects Segment Update Figures in INR Crores ¥ This segment consists of small commercial Projects with retail shops cum office spaces 10 ¥ It constitutes only 2 projects i.e. approx. 2% (INR 9 2.15 Cr) of total Wholesale book (AUM) ¥ Both the projects are co
Slide 16: WS Small - Small Builder Loans
WS Small — Small Builder Loans Small Builder loans Segment Update Figures in INR Crores ¥ Delhi NCR is a big market having a potential of 10K crore for small builders, whose borrowing requirements are not serviced by the standard products offered by Financial Institutions/ Banks 100 Geographically,
Slide 17: WS - LAP/MSME
WS — LAP/ MSME LAP / MSME Segment Update Figures in INR Crores ¥ WS LAP/MSME comprises of business or working capital loans provided to MSME/ business entities for various 50 business activities 44.93 ¥ Total AUM of the WS LAP book is INR 29.96 Cr which is 40 just 12% of the total wholesale book (AU
Slide 18: Wholesale Lending Book - Risk Management Framework
Wholesale Lending Book — Risk Management Framework = Presence in selected pockets of Delhi NCR = Excellent understanding of the market dynamics and risks Presence in select = Customer selection based on end use demand markets = Last mile financing — significantly reduces project risk = Deal with rep
Slide 19: Wholesale Book - Product Breakup
Wholesale Book — Product Breakup Wholesale Book - Large (Rs Cr) Wholesale Book - Small (Rs Cr) 500 100 180 174 s 79 80 85 81 160 | 1° 152 147 147 152 138 60 60 56 120 45 80 40 33 ‘0 2 a 0 0 Q3FY18 Q4FY18 QIFYI9 Q2FY19 Q3FY19 Q4FY19 QIFY20 Q2FY20 Q3FY18 Q4FY18 QIFY19 Q2FY19 Q3FY19 Q4FY19 QIFY20 Q2FY2
Slide 20: SME Retail Lending Book
SME Retail Lending Book Assets Under Management (AUM) Business Approach Figures in INR Crores ¥ Focus on increasing market presence in current 70 68.62 geographies of north and west India. 65 60 ¥ To increase market presence with hub and spoke model 55 within existing 19 branches 50 45 ¥ Continuous
Slide 21: SME Retail Book - Industry Composition
SME Retail Book- Industry Composition Industry wise Composition (INR Cr) Salaried Individual Manufacturing 2.97 3.47 Kirana Merchant 4.52 Auto Workshops 1.69 Healthcare 1.14 Services 11.72 Trading & Others 10.84 Schools 25.31 Dairy 6.15 @)) CSL Finance Limited
Slide 22: Wholesale Lending Book - Operational Update
Wholesale Lending Book — Operational Update ¢ AUM for Wholesale Lending Book in Q2 FY20 is INR 249 Cr ¢ There is no NPA in the wholesale book & no account is in 30+ DPD ¢ AUM for the wholesale book has been decreased by 11% during Q2 FY20 vis-a-vis Q2 FY19 ¢ Despite our wholesale lending book doing
Slide 23: SME Retail Book - Operational Update
SME Retail Book— Operational Update AUM for SME Retail book in Q2 FY20 is INR 69 Cr & Net NPA is maintained at 1.17% during Q2 FY20 in the SME book AUM for SME Retail book has almost doubled during Q2 FY20 vis-a-vis Q2 FY19 The operating environment has been tough because of the slowing economy. The
Slide 24: Financial Snapshot
Financial Snapshot INR Cr Revenue 15.13 14.62 59.69 Nil 11.89 10.81 42.91 PAT 7.25 5.89 25.15 Net worth 223./8 198.77 214.76 AUM 316.88 313.17 323.51 CAR 10% 63% 66% (©) CSL Finance Limited © 2019 CSL Finance Limited, All Rights Reserved. 23
Slide 25: Financial Update
Financial Update CSL Finance recorded an increase of 3% in revenues in Q2 FY20 vis-a-vis Q2 FY19 ¢ Operating profit increased by 8% in Q2 FY20 vis-a-vis Q2 FY19 ¢ Net interest income has increased by 10% Q2 FY20 vis-a-vis Q2 FY19 ¢ AUM increased by 1% in Q2FY20 vis-a-vis Q2FY19. ¢ Cash flows of whol
Slide 26: Financial Metrics
Financial Metrics Total Income (Rs Cr) Operating Expenses (Rs Cr) 90 4.00 15.81 15.6 15.39 15.13 16 14.62 300° 3.02" 393" 3.04* 3.00 ° 2.81* 12 10.81 2.27* = 2.21* 2.00 8 2.00 ° 1.00 a Q3FY18 Q4FY18 QIFY19 Q2FY19 Q3FY19 Q4FY19 QIFY20 Q2FY20 Q3FY18 Q4FY18 QI1IFY19 Q2FY19 Q3FY19 Q4FY19 QI1FY20 Q2FY20
Slide 27: Financial Metrics (contd..)
Financial Metrics (contd..) Net Interest Income (Rs Cr) AUM - End of Quarter (Rs Cr) A00 12.07 = 11.89 302 313 322 324 317 318 12 10.25 10.81 11.05 320 360 281 4 oO NR © 6 oO — a 8 oO w 0 oO Q3FY18 Q4FY18 QIFY19 Q2FY19 Q3FY19 Q4FY19 QIFY20 Q2FY20 Q3FY18 Q4FY18 QI1FY19 Q2FY19 Q3FY19 Q4FY19 QIFY20 Q2F
Slide 28: Financial Metrics (contd..)
Financial Metrics (contd..) Borrowings (Rs Cr) Net worth (Rs Cr) 250 215 221 224 150 130, 424 gp 194 ««199—-—«206 116 200 - 178 184 120 102 102 105 90 150 90 60 100 30 50 0 0 Q3FY18 Q4FY18 QIFY19 Q2FY19 Q3FY19 Q4FY19 QIFY20 Q2FY20 Q3FY18 Q4FY18 QIFY19 Q2FY19 Q3FY19 Q4FY19 QIFY20 Q2FY20 Cash & Cash E
Slide 29: ALM Breakup
ALM Breakup Maturity Pattern of Assets & Liabilities as on 30° Sept,2019 (INR Cr) 200 188 150 133 1 00 84 50 25 13 0 mz ° Upto 1 year 1-5 years Over 5 years m@ Assets Liabilities Note: ¢ First bucket of upto 1 year includes CC limit and WCDL of INR 67 Cr which are renewable every year ¢ Last bucket
Slide 30: Debt Profile as on 30th Sept, 2019
Debt Profile as on 30* Sept, 2019 Sanction O/s Loan Amount as on Lender's Name Facility Type Period 30.09.2019 (in INR CR) Tourism Finance Corporation of India ltd Term Loan Nov'17 18.50 TATA Capital Term Loan May'18 3.75 AU Small Finance Bank Term Loan Aug'18 13.33 AU Small Finance Bank Term Loan J
Slide 31: Current Strategy & Outlook
Current Strategy & Outlook ¢ Continuous and rigorous review of all loan accounts considering challenging market conditions ¢ We are focused on the improving the quality of our book and are more selective in our disbursements ¢ We are migrating to a newer version of FinnOne LOS Software, which is com
Slide 32: Thank You
Tnank You CSL Finance Limited Corporate Office: Investor Contact: 716-717, 7* floor, Tower B, Akash Gupta World Trade Tower, Sector16, Phone: 0120 4290650-52-53-54-55 Noida- 201301 Email: investor@cslfinance.in Email: akash.gupta@cslfinance.in @)) CSL Finance Limited